Tips for PMP Exam

Title PERT expected activity duration (EAD) Standard Deviation of an activity (SD) Variance of an activity Range of an activity duration Total Float Cost Variance (CV) Schedule Variance (SV) Cost Performance Index (CPI) Schedule Performance Index (SPI) Estimate at Completion (EAC) To Complete Performance Index (TCPI) Estimate to Complete (ETC) Variance at Completion (VAC) Present Value Communication channels Expected Monetary Value Point of Total Assumption (PTA) Motivational Theories Manager who accept this theory believe that people need to be watched every minute. People are incapable, avoid responsibility, and avoid work whenever possible. Formula (P + 4M + O) / 6 (P - O) / 6 SD ^ 2 EAD +/- SD LS - ES, or LF - EF EV - AC EV - PV EV/AC EV/PV BAC / CPI (BAC - EV) / (BAC - AC) EAC - AC BAC - EAC PV = FV / (1 + r)^n [ N * (N - 1) ] / 2 EMV = P x I [ ( Ceiling price - Target price ) / Buyer's share ratio ] + Target cost KA Time Time Time Time Time Cost Cost Cost Cost Cost Cost Cost Cost Cost Communications Risk Procurement

McGregor's Theory of X and Y

Theory X

Theory Y

Manager who accept this theory believe that people are willing to work without supervision, and want to achieve. People can direct their own efforts

Ouchi Theory of Z Herzberg's Theory

Workers are more participative, and capable of performing many and varied tasks. Theory Z emphasises things such as job rotation, broadening of skills, generalisation versus specialisation, and the need for continuous training of workers. This theory deals with hygiene factors Hygiene factors: Working conditions, salary, personal life, relationships at work, security, status and motivating agents. Motivating agents: Responsibility, self-actualization, professional growth, recognition Maslow's message is that people are Instead, the highest motivation is to contribute and to use their skills. Maslow calls this "selfnot most motivated to work by security actualization". He created a pyramid to show how people are motivated and said that one cannot or money ascend to the next level until the levels below are fulfilled.

Maslow Hierarchy

People are most motivated by one of the three needs listed in the following table. A person falling into one category would be managed differently than a person falling into another category Primary Need Behavioral Style - These people should be given projects that are challenging but reachable. Need for Achievement - They like recognition David McClelland's Theory of Needs (or Acquired Needs Theory) - These people work best when cooperating with others Need for Affiliation - They seek approval rather than recognition

Need for Power Power of the Project Manager Formal (Legitimate) Reward Penalty (Coercive) This power is based on your position. This power stems from giving rewards. This power comes from the ability to penalize team members. This power comes from being the technical or project management expert. This power comes from another person liking you, respecting you or wanting to be like you.

- People whose need for power is socially oriented, rather than personally oriented, are effective leaders and should be allowed to manage others - These people like to organize and influence others.

You need to lesten to me when I tell you to do this work, because I have been put in charge! I understand that you want to participate in the acceptance testing of this project. Because of your performance, I will assign you as part of that team If this does not get done on time, I will remove you from the group going to Hawaii for the customer meeting

Expert

I hear the project manager ha sbeen very successful on other projects. Let's give her a change The most respected project manager in the organization says, "I think we should change the content of our standard projcet charter

Referent Management and Leadership Styles Directing Facilitating Coaching Supporting Autocratic

This involves telling others what to do This involves coordinating the input of others Here the manager helps others achieve their goals It involves providing assistance along the way This is top-down approach where the manager has power to do whatever he or she wants. The manager may coach or delegate, but everyone is doing what the manager wants them to do

Sources of Conflict in order of frecuency 1. Schedules 2. Project priorities 3. Resources 4. Technical opinions 5. Administrative procedures 6. Cost 7. Personalities Notice PERSONALITIES is last! Conflict resolution techniques (the best way, in order:) Confronting (Problem solving) Confronting is not always the best answer to a question Compromising Withdrawal (Avoidance) Smooting (Accomodating) Collaborating Forcing Rita's Process Chart - Planning Process Group (in order:) 1. Determine how you will do planning - part of all management plans 2. Finalize requirements 3. Create project scope statement 4. Determine what to purchase 5. Determine team 6. Create WBS and WBS dictionary 7. Create activity list 8. Create network diagram 9. Estimate resource requirements 10. Estimate time and cost 11. Determine critical path 12. Develop schedule 13. Develop budget

14. Determine quality, standards, processes, and metrics 15. Create process improvement plan 16. Determine all roles and responsibilities 17. Plan communications 18. Perform risk identification, qualitative and quantitative risk analysis, and risk response planning 19. Go back - iterations 20. Prepare procurement documents 21. Finalize the "how to execute and control" parts of all management plans 22. Develop final PM plan and performance measurement baseline that are realistic 23. Gain formal approval of the plan 24. Hold kickoff meeting 6 Sigma Values 1 sigma = 68.26% 2 sigma = 95.46% 3 sigma = 99.73% 6 sigma = 99.99% Estimation Techniques for Activity Duration and Cost One-point estimate The time estimate can be made based on expert judgement, by looking at historical information or even by just guessing Analogous estimate (Top-Down) e.g. this activity took 20 hours the last two times it was done, so use 20 hours this time Parametric estimate There are two ways an estimator might create parametric estimates: Regression analysis (scatter diagram) and Learning curve. e.g., $ per line of code Heuristics Means a rule of thumb. E.g. 80/20 rule. This rule applied to quality, suggests that 80% of quality problems are caused by 20% of potential sources of problems. Three-point estimate (PERT analysis) Optimistic, Most Likely and Pessimistic Contract types FP Incentive Fee Fixed Price FP Award Fee FP Economic Price Adjustment Purchase Order Time and Material The buyer pays on a per-hour or peritem basis. Cost Contract Cost Plus Fee or Cost Plus Percentage of Costs Cost Plus Fixed Fee FPAF FPEPA PO FPIF Contract $1.100.000. For every month early the project is finished, an additional $10.000 is paid to the seller Contract $1.100.000. For every month performance exceeds the planned level The seller is forced to accept a high level of risk. by more than 15%, an additional $5.000 is awarded to the seller, with a The seller is most concerned with the procurement maximum award of $70.000 statement of work (SOW) in this type of contract. Contract $1.100.000, but a price increase will be allowed in year two based on the U.S. Consumer Price Index report for year one. simplest type of FP contract

It has elements of a fixed price contract (in the fixed price per hour) and cost reimbursable (in the material costs and the fact that the total cost is unknown) Contract = Cost There is no profit CPF or CPPC CPFF This type of contract is used when the exact scope of work is uncertain and, therefore, costs connot be estimated accurately enough to effectively use a fixed This type of contract provides for the seller to be paid for actual costs plus a price contract. fee that will be adjusted based on whether the specific performance objectives Here the buyer has the most cost risk because the total stated in the contract are met. costs are unknown. Contract = Cost plus $5.000 for every month production exceeds 100.000 units. Maximum award available is $50.000 Contract = Cost plus 10% of costs as fee Contract = Cost plus a fee of $100.000

Cost Reimbursable Cost Plus Incentive Fee Cost Plus Award Fee 100% BUYER CPIF CPAF

Risk SELLER 0 CPPC CPFF CPAF CPIF T&M FPEPA FPIF FP

Terms and Conditions to remember: Arbitration Bonds Breach/Default Force majeure Termination Waivers Warranties

Method to resolve disputes Payment or performance bonds if any that must be purchased This occurs when any obligation of the contract is not met This is a situation that can be considered an act of God, such as a fire or freak electric storm, that is allowable excuse for either party not meeting contract requirements. Termination is stopping the work before it is completed They are statements saying that rights under the contract may not be waived or modified other than by express agreement of the parties. These are promises of quality for the goods or services delivered under the contract usually restricted to a certain time period

Project Constraints

Scope Cost

Time

Risk

Human Resources Quality Customer Satisfaction